Best country to start an online business as a digital nomad in 2025
Are you a digital nomad looking for a place to settle down? Look no further. In this article, we will show you some of the best countries for entrepreneurs following this lifestyle. In addition, we will take a look at the statistics and key points such as the advantages and disadvantages of this lifestyle, the requirements for working this way and the tax implications across different countries.
Remote working is a constantly growing trend, with more and more people working in this way. One of the circumstances most accentuated this trend was the recent COVID-19 pandemic, in which millions of people had to work from home. With the global trend of remote working, many people have started looking for the best country to start their online business.
Who is a digital nomad in 2025
Being a digital nomad is one of the aspirations of many people who work in digital environments since this way of life offers numerous advantages, the most notable being flexibility in terms of working hours and location. But what exactly is a digital nomad, and how to become one? Which businesses or profiles are suitable? How does one find the best country to incorporate an online business? There are many questions to be answered, so let's take it one step at a time and start with the definition.
A digital nomad is a person who has developed a business model that allows them to work remotely, and therefore the possibility of doing so from anywhere in the world, leading a “nomadic life”.
Some of the professions that are most suited to this way of life are as follows:
- Web and software developer
- Graphic designer
- Content writer and copywriter
- Digital marketing and SEO specialist
- Community manager and social media manager
- Translator and editor
- Business or strategy consultant
- Photographer or videographer
Although there are many digital nomads around the world, and their number is increasing, it is almost impossible to obtain precise statistics on the scale of this phenomenon. This is due to their constant mobility, their professional diversity, the absence of a homogeneous legal definition, the informality with which many operate and the limited data collection by governments or institutions. However, it is possible to obtain a first approximation by reviewing the statistics offered by the site nomad.com, one of the largest communities in the world created by and for digital nomads.
According to this site, the United States is the country with the highest number of digital nomads with more than 42 million people, more than six times the number in the United Kingdom, which comes second with almost 7 million. Canada, Russia, and Germany follow in the next places, all with around 4 million people.
Why do digital nomads need an online company?
It is possible to work as a digital nomad by working as an employee, as a freelance entrepreneur or through a company, and each of these ways of working has its advantages and disadvantages. The last option is not always the first one to be chosen because of the paperwork, the requirements, and the initial costs that it may entail, but it offers many advantages. Some of creating and working through a digital nomad company are the following:
Limitation of personal liability
Professional credibility
Tax benefits
Scalability
Access to financing
Best countries to open a business for digital nomads in 2025
A digital nomad can by definition work remotely, so they can work in any country in the world and live travelling from one place to another. However, it is necessary to define a place where the tax residence will take place and where, eventually, a company will be registered if it is decided to operate through it. So let's see which are the best places to do it, but first we will examine the main criteria to consider when choosing the best jurisdiction for online business.
- Tax system: it is important to evaluate personal and corporate taxes as well as treaties to avoid double taxation and to find out which countries offer the most favourable conditions for digital nomads.
- Ease of registering companies: it is important to consider countries with simple, fast and accessible processes for company incorporation.
- Cost and quality of life: although a digital nomad may travel a lot when choosing a country as a tax residence and/or headquarters for the company through which they operate, they may spend a greater part of their time there, so it is important to consider the general expenses of living and working there and to evaluate aspects such as the health system, security and local culture.
- Visas for digital nomads: it is good to look for countries that offer specific visas for remote working and facilitate long stays.
- Access to banking and financial services: make sure it is easy to open business and personal bank accounts.
Now let's dive into the list of countries and see which ones offer the best conditions for digital nomads.
United States
The United States can be a great place to establish yourself as a digital nomad as the country has a strong economy, world-class technological infrastructure and a great innovation ecosystem. In addition, the country offers access to an immense network of business opportunities, highly diversified markets and multiple resources for entrepreneurs operating online businesses.
Although the country has a complex tax system, many take advantage of setting up companies in business-friendly states, and one sign of the success of this business model in the country is the significant number of digital nomads it hosts, as we saw earlier in the statistics.
In terms of taxes, the country has the following rates:
- Top personal income tax rate: 37%
- Corporate income tax rate: The federal CIT is 21% and state CITs range from 1% to 12% (although some states impose no CIT) and are deductible expenses for federal CIT purposes.
United Kingdom
The UK can be an excellent place to settle thanks to its advanced legal system, its solid protection of intellectual property and the availability of programs such as the Innovator Founder visa that facilitates residency for entrepreneurs with innovative, viable and scalable business ideas.
In addition, the UK offers a high standard of living with first-rate services, from an accessible healthcare system to efficient public transportation. Cities such as London, Manchester, and Edinburgh have active communities of digital nomads and remote workers who organize networking events and meetups. And to top it all off, the process of registering a company in the UK is also quite simple, with a fee of only £12.
In terms of taxes, the country has the following rates:
- Top personal income tax rate: 45%
- Corporate income tax rate: 25%
Estonia
Estonia is famous for being the future of digital nomads as it was the first country to announce an official visa for digital nomads and has consistently promoted digital growth. The innovative e-Residency program allows entrepreneurs from any country to create and manage a company in Estonia 100% remotely with access to digital banking services and a clear and favorable tax environment.
In addition, this country has a technological infrastructure that is extremely favorable for digital nomads, the country greatly facilitates online procedures and provides a hassle-free experience. A small indication of its level of digitalization is the presence of the second fastest public Wi-Fi network in the world.
In terms of taxes, the country has the following rates:
- Top personal income tax rate: 20%
- Corporate income tax rate: 20% and undistributed profits are tax exempt
Spain
Spain is another European destination chosen by digital nomads and stands out for its quality of life with a pleasant climate, delicious food and a rich cultural life together with relatively low living costs. In addition, interest in Spain among digital nomads has increased considerably following the recent introduction of the Visa for Digital Nomads.
Barcelona and Valencia, two of the country's main cities, are very attractive to digital nomads, but they are not the only ones. Malaga has become a center of attraction for many tech giants such as Google and has the largest number of start-ups. This city is full of opportunities for digital nomads and offers great access to the international community through large-scale networking events.
In terms of taxation, the country has the following rates:
- Top personal income tax rate: 47% is the maximum progressive scale of withholdings rate but the final taxation will vary depending on the autonomous region where the taxpayer is resident, in some of them, the headline PIT rate reaches 54%.
- Corporate income tax rate: 2%
Luxembourg
Luxembourg is one of the best destinations to consider when looking for a place to settle down. Although it does not have a specific visa for digital nomads like Estonia or Spain, the country is ideal for entrepreneurs looking to settle down due to its favorable tax system, economic stability and strategic location in the heart of Europe. In addition, the country has one of the highest standards of living on the continent, although this comes with a high cost of living.
Furthermore, according to Brother UK, a technology provider that determined the best, worst, happiest and cheapest places in Europe to work remotely, Luxembourg is the best city in Europe for remote working. When considering the elements most sought after by digital nomads, the city of Luxembourg scored 68/100, the highest of all the destinations surveyed.
In terms of taxes, the country has the following rates:
- Top personal income tax rate: 45.80%
- Corporate income tax rate: 23.87% on a combined basis (CIT, solidarity surtax, and municipal business tax in Luxembourg City)
Barbados
What could be better than working from the heavenly beaches of a Caribbean island? Well, Barbados is the perfect place for it and as if it wasn't attractive enough, at the end of June 2020 the Barbados Welcome Stamp appeared, further increasing interest for digital nomads.
With this permit, it is possible to enjoy the climate, beaches, and culture of this Caribbean island while working remotely for 12 months with the possibility of extending your stay. However, to qualify for a digital nomad visa in Barbados, it is necessary to have a minimum income of 50,000 USD during the year of stay. A sum which, needless to say, is not within the reach of all digital nomads.
In terms of taxes, the country has the following rates:
- Top personal income tax rate: 28.50%
- Corporate income tax rate: 9%
Czech Republic
The Czech Republic is an extremely attractive destination for digital nomads thanks to its affordable quality of life compared to other European countries and its location in the heart of Central Europe. Prague, one of the most beautiful cities in the old world, has become a hub for remote workers due to its solid technological infrastructure, abundance of coworking spaces and an active international community.
And best of all, the Czech government has created a visa called Zivno, an abbreviation of Živnostenské oprávnění which translates as Trade License. This is a permit for freelancers and entrepreneurs who want to work for a while in this charming country, although as always, this visa comes with certain requirements. One of the most important is to have sufficient resources, specifically 53,210 CZK for each month of stay, which is about 2,123 euros per month.
In terms of taxes, the country has the following rates:
- Top personal income tax rate: 23%
- Corporate income tax rate: 21%
Costa Rica
Costa Rica is, like Barbados, another natural paradise for digital nomads who love nature. The country stands out for its focus on quality of life and its commitment to sustainability. In addition, Costa Rica is known for its political stability, its focus on renewable energy and its “pura vida” philosophy of life that encourages a balance between work and personal well-being.
Moreover, the recent introduction of the Digital Nomad Visa in 2022 allows remote workers to legally reside in the country for up to two years. The main requirement is to be able to demonstrate an income of more than 3 thousand dollars per month or 4 thousand dollars if you are traveling as a family.
In terms of taxes, the country has the following rates:
- Top personal income tax rate: 25%
- Corporate income tax rate: 30%
Australia
Australia is a vast and diverse country that offers a variety of options for digital nomads looking for a combination of work and adventure. With cities that stand out for their modern infrastructure, high quality of life and spectacular natural landscapes, the country has become a very attractive destination for digital nomads.
Sydney is the country's most iconic city and combines an active urban lifestyle with beautiful beaches and incredible landscapes. It stands out for its powerful infrastructure, its network of first-rate coworking spaces and its wide range of cultural offerings. In addition, it has a large international community that facilitates networking and the integration of digital nomads into the local environment. But it is not the only attractive city for digital nomads, there are many more. Perth, known for its stunning beaches, sunny climate and relaxed atmosphere, is also perfect for digital nomads looking for a quieter place to concentrate on their work.
Although Australia does not have a visa specifically for digital nomads, the Work and Holiday visa is well suited for this purpose. This permit is valid for 1 year and enables you to work remotely and even to get a job on-site.
In terms of taxes, the country has the following rates:
- Top personal income tax rate: 45%
- Corporate income tax rate: 30% or 25% for 'small-medium business' entities
In this guide we have reviewed some great places to settle as a digital nomad, however there are many more, and the fact that we have left some out does not mean that they are not excellent options. Alternatives such as Hong Kong, Singapore, Mexico, Andorra, Denmark, Norway, Belize, New Zealand or Colombia are excellent choices. The important thing when choosing a place is to look at what it has to offer, the requirements for living as a digital nomad and balancing this with one's personal expectations.
Frequently Asked Questions (FAQ)
What factors should I consider when choosing a country to start an online business?
How do I decide between a tropical location and a business hub for my base?
Is it better to register a company or work as a freelancer while being a digital nomad?
Source: nomads.com, taxfoundation.org, taxsummaries.pwc.com, www.gov.uk, wambraviajera.com, www.brother.co.uk, www.visitbarbados.org, mzv.gov.cz, immi.homeaffairs.gov.au
We took photos from these sources: A. Calvar on Unsplash
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